JLF Investment Company Limited provided earnings guidance for the six months ended June 30, 2014. The board of directors informed the shareholders of the company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended June 30, 2014, the group is expected to record a loss for the period. Based on the information currently available, the anticipated loss was mainly attributable to: the decline in gross profit margin on Yuquan business caused by a substantial decline in the sales of high-end baijiu products; and the rising operating costs especially on raw materials, labour and marketing expenses etc.

The board is of the view that despite the anticipated loss, the overall operation of the group remains sound and the financial position of the group remains healthy.